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Tyson warns reopening Mexican cattle border will not fix US beef losses
USDA will reopen the Douglas, Ariz., port Aug. 24 and add New Mexico ports handling more than half of imports, but Tyson says the relief may take up to a year and will not lift 2026 results.
Tyson Foods Chief Executive Donnie King said the planned reopening of the US-Mexico cattle border will ease some pressure on US beef supply, but will not fully offset the losses facing the industry this year, according to remarks made on the company earnings call reported by Yahoo Finance.
The USDA will reopen the Douglas, Ariz., port of entry for cattle trade starting Aug. 24, before opening two additional ports in New Mexico that together account for more than half of US imports. The agency had suspended southern-border cattle imports in November 2024 and again in mid-2025 over concerns about the spread of the New World screwworm, and it said animals entering through the reopened ports will undergo full USDA inspection.
Tyson said the US cattle herd is at its lowest level in 75 years, a squeeze that has pushed consumer beef prices to record highs. In Tyson's fiscal third quarter, beef volume fell 15.9% while prices rose 12.1%, and King said the border reopening will not close the entire gap of beef losses the company is seeing.
Tyson COO Wes Morris added that any positive impact could take up to a year as younger cattle move to grass and then to feed yards, and the company said the timing will limit effects for the rest of its fiscal year ending in September. Yahoo Finance reported Tyson lowered its 2026 adjusted operating income outlook, now expecting annual operating profit of $2.1 billion to $2.3 billion and projecting an operating income loss of $500 million to $650 million for the beef segment.